Optimizing commercial auto expenses during a hard market

October 28, 2024 / 3 min read

The cost of one critical risk assessment tool for commercial auto insurers is up more than 25% over the past decade: Verisk research shows the national average price of a motor vehicle report (MVR) now exceeds $11.¹ MVR data is crucial for underwriters, and this increase is an indicator of the pressure on commercial auto insurers to manage underwriting expenses.

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Tracking driver risk is among the highest costs for commercial auto insurers. Consolidated solutions from a trusted provider can help manage underwriting expenditures and offer opportunities for improved efficiencies.

Driving History Solutions from Verisk can help insurers pinpoint potential sources of loss, optimize MVR spend, avoid trade-offs between excessive costs and premium leakage, refine segmentation, and more.

More than 30 years of experience sourcing data from motor vehicle agencies
Standardized violation codes across 51 U.S. jurisdictions and four Canadian provinces
Innovation in public records data aggregation spanning more than 15 years
More than 2 billion public records on driver risk

End-to-end support for your book of business

Maintaining a healthy portfolio is a continuous process that unfolds from quote to midterm adjustments and renewal. Obtaining current, reliable driving history data is critical at every stage, but doing so economically can complete the loop that leads to profitable underwriting. Commercial auto insurers need tools that align with the dual imperatives of comprehensive and cost-efficient driver risk insights.

Verisk’s Driving History Solutions capabilities across the policy life cycle

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Leveraging court record analytics and data from various public sources, insurers can gain faster risk insights that deliver value across the policy life cycle. These functions include violation prefill, risk segmentation, optimized MVR ordering, planning future underwriting actions based on incidents not yet adjudicated, and more.

Consider these use cases that drive high ROI and significant savings:

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Commercial auto insurers can optimize expenses and boost profitability while avoiding premium leakage trade-offs. These capabilities are even more critical in today’s persistent hard market, which coincides with a surge in risky driving behavior. Tracking risk in a cost-effective way is easier with a comprehensive proprietary suite of tools featuring unique, granular data.

Verisk’s Public Records Intelligence provides more than 2 billion traffic records, over 10,000 connections to traffic courts, more than 300 million crash records, and information on over 65,000 nontraffic criminal offenses. This deep reservoir of data can help insurers discover:

Convictions that don’t appear on the MVR
Violations issued outside the license state
Infractions that are too recent to show on the driving record
Offenses with amended charges
Vehicle crash details
Nontraffic criminal data charges such as financial fraud, claims-related offenses, property damage, and information on other felonies and misdemeanors

These resources can help insurers confront violation-related premium leakage and adverse selection while balancing rising MVR fees. A potent combination of court record analytics and public data accelerates risk analysis and supports a range of valuable use cases.

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Learn more about expense optimization and explore three other strategies to modernize for the long haul when you download Verisk’s new white paper.

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Verisk analysis of state motor vehicle report fees, as of September 1, 2024.